Although investors have been aiming towards short-term high return investments, there are reasons to believe that they could turn towards long-term green investments in the near future.
XTrade is aware of the need of investing in sustainable technologies. While the far ends of our universe seem to continue relentlessly shifting from blue towards the red side of the light spectrum, our planet seems to be shifting from green towards browns and ochres—dry ochres at that.
This has been known for ages but it seems that XTrade and some other companies are taking steps to have a green global economy, aiming to reach lasting global benefits.
Reasons to Think Investor’s Aims Could Shift
- One of the reasons is that investors show signs of abandoning binary decision-making for one that revolves around the environmental data they have access to now. To make wise decisions you need accurate data, and that data must include information about environmental, social and governance factors (ESG). How else could you factor in the value of biodiversity, water and forests when you plan your investing or trading strategies?
- Another reason is that some are looking at waste as a new resource to generate income. Some have been entertaining for a long time the idea of a “circular economy”. Recently developed start ups will tempt the investors as governments demand carbon pricing in order to pivot to renewable energies.
- A third reason has to do with the benefits of aiming for long-term decision making. Think about the huge risk that a company may incur if they myopically would not realise that short-term benefits must not be placed before social and environmental responsibility. Were executives to do so, in spite of the current social circumstances, 1)their reputation would plummet, and 2) their company would possibly fall headlong along with them since it would not be up to date nor ready to comply with the latest regulations when those regulations come into action. Investors are starting to use their power to demand responsible decision making.
- The UN endorsed the Principles for Responsible Investments initiative (PRI) made up by a multinational group of investors who work shoulder to shoulder pursuing a responsible way of investing. So far they amount to more than 1,380 members and have already reached the 59,000,000,000 USD in AUM (Assets Under Management) which shows their success. The Goldman Sachs Group, Inc. deemed it was a good decision to buy Imprint Capital. A fact that could prompt other Wall Street suitors to increase their impact efforts.
XTrade Believes That Change Is Possible
In view of the reasons mentioned above, at XTrade we believe in sustainable and responsible investing. Do you think that trading CFDs has no relation at all with the environment and sustainability? Consider then what the United Kingdom Government said in the latest consultation about Biomass sustainability. They set out some changes and made clear that their intention was that “Contracts for Difference (CFD) [would] follow the same approach as the sustainability criteria set under the RO [Renewables Obligation]”. Make a difference—go for green.